1.
Calculate the regular earnings for the weekly payroll ended December 13, 2019.
1.
Explanation of Solution
Calculate the regular earnings for the weekly payroll ended December 13, 2019.
Step 1: Calculate the annual salary of Employee LR, Employee RB and Employee GL.
Employee | Monthly salary (A) | Annual salary (A×12months) |
Employee JR | $7,280 per month | $87,360.00 |
Employee OJ | $5,265 per month | $63,180.00 |
Employee MK | $3,400 per month | $40,800.00 |
Table (1)
Step 2: Calculate the regular earnings of each employees.
Employee | Annual salary (A) | Regular Weekly earnings |
Employee WH | $99,840.00 | $1,920.00 |
Employee PB | $96,200.00 | $1,850.00 |
Employee JR | $87,360.00 | $1,680.00 |
Employee OJ | $63,180.00 | $1,215.00 |
Employee MK | $40,800.00 | $784.62 |
Total | $387,380.00 | $7,449.62 |
Table (2)
Thus, the total regular earnings for the weekly payroll ended December 13, 2019 is $7,449.62
2.
Calculate the overtime earnings if any applicable to any employee.
2.
Explanation of Solution
Calculate the overtime earnings for Employee GL.
Employee | Weekly earnings (A) | Regular hourly rate (B) |
Overtime hourly rate (C) |
Overtime earnings (D) |
Employee MK | $784.62 | $19.62 | $29.42 | $176.54 |
Table (3)
Thus, the overtime earnings for Employee GL is $176.54.
3.
Calculate the total regular, overtime earnings and bonus.
3.
Explanation of Solution
Calculate the total regular, overtime earnings and bonus.
Employee | Regular Weekly earnings | Overtime earnings | Annual bonus | Total earnings |
Employee WH | $1,920.00 | $0.00 | $35,000 | $36,920.00 |
Employee PB | $1,850.00 | $0.00 | $25,000 | $26,850.00 |
Employee JR | $1,680.00 | $0.00 | $20,000 | $21,680.00 |
Employee OJ | $1,215.00 | $0.00 | $15,000 | $16,215.00 |
Employee MK | $784.62 | $176.54 | $8,000 | $8,961.16 |
Total | $7,449.62 | $176.54 | $103,000 | $110,626.16 |
Table (4)
Calculation for total regular, overtime earnings and bonus is as follows.
Table (5)
4 and 5.
Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.
4 and 5.
Explanation of Solution
Calculate the FICA taxable wages for this period and FICA taxes to be withheld for this period.
Cumulative earnings as of Last Pay Period | FICA Taxable Wages This Pay Period | FICA Taxes to be Withheld | Employees | ||
OASDI (A) | HI (B) | OASDI | HI | ||
$94,080.00 | $36,920.00 | $36,920.00 | $2,289.04 | $535.34 | Employee WH |
$90,650.00 | $26,850.00 | $26,850.00 | $1,664.70 | $389.33 | Employee PB |
$82,332.00 | $21,680.00 | $21,680.00 | $1,344.16 | $314.36 | Employee JR |
$59,535.00 | $16,215.00 | $16,215.00 | $1,005.33 | $235.12 | Employee OJ |
$38,446.38 | $8,961.16 | $8,961.16 | $555.59 | $129.94 | Employee MK |
$110,626.16 | $110,626.16 | $6,858.82 | $1,604.08 | Totals |
Table (6)
Step 3: Calculate the employer’s portion of the FICA taxes for the week ended.
Calculate the OASDI taxes.
Calculate the HI taxes.
Calculate the total FICA taxes.
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Chapter 3 Solutions
Payroll Accounting
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